The Inter-American Development Bank (IDB) has approved a US$350 million policy-based loan to Guyana to push efforts to modernize and expand the country’s social protection systems.

The loan is expected to support the Ministry of Human Services and Social Security in enhancing the efficiency and reach of its social safety net, with a focus on digital transformation, inclusion, and empowerment of vulnerable groups.

According to an announcement by the IDB, among other things, the loan will streamline and digitize the Ministry’s processes to reduce transaction costs and improve service delivery for beneficiaries.

It is also expected to enhance the senior citizens’ pension programme by supporting the more than 82,000 senior citizens by expanding access to electronic amendments, as well as increasing the coverage of the Public Assistance program.

Further, the IDB said under the loan agreement, it is expected that the Guyana will scale up training programs that equip persons with disabilities with employability skills, adaptive living techniques, and tools for improved quality of life as well as expanding the Women’s Innovation and Investment Network (WIIN) Business Clinic to provide women with training in business management, legal literacy, and access to funding.

Moreover, the IDB said the loan is also expected to support survivors of Gender Based violence by strengthening the Survivors Advocates program and the Counter Trafficking in Persons Unit to provide comprehensive support to survivors and supporting the development of a coordinated, inter-institutional strategy to combat human trafficking.

The IDB said most of the initiatives were launched in 2023 and reflects a holistic approach to social protection, targeting the most disadvantaged and underserved populations in Guyana.

The IDB loan features a 20-year amortization period, a 5.5-year grace period, a one-year disbursement window, and a Secured Overnight Financing Rate-based interest rate.

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